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Published bySamantha Holland Modified over 9 years ago
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An overview of the Nigerian Cashew Sector & Investment Opportunities
Olusegun Awolowo Executive Director/CEO Nigerian Export Promotion Council
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Outline Introduction About NEPC Nigerian Cashew profile
Opportunities for investment Investing in Nigeria Business Registration Taxation Financing Incentives Conclusion
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Introduction - About NEPC
Established in 1976 to promote the growth of non-oil exports and to diversify the Nation’s economy Has its headquarter in Abuja with 15 Zonal offices spread across Nigeria Main activities – Product development; Trade information & facilitation ; Market development; Multi lateral and Bi-lateral trade relations; Incentives; Capacity development. Export Business...Tomorrow's Business
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Introduction – Nigerian Cashew Profile
Ranked 7th, Nigeria is among top 10 Raw Cashew nut (RCN) producing countries in the world. 4th in Africa after Cote d’Ivoire, Guinea-Bissau and Tanzania, 130,000 m/t produced in 2014 Cashew is produced in commercial quantities in 15 of the 36 States in Nigeria, across its South Eastern, South Western and North Central regions. Grows in almost every state. Cashew is Nigeria’s third largest agricultural export Value of Cashew export in 2013 was $110M, which represented 8% of all agricultural exports.
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Nigerian cashew grows in different climatic zones
Nigerian cashew grows in different climatic zones. Ogbomosho, Kogi, Abeokuta are premium quality origins Kwara 10-15% Ebonyi 2-3% Kano 3-5% Enugu 8-10% Delta Imo Osun 7-9% Kaduna 6-8% Sokoto Oyo 12-15% Kogi 20-30%
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Vital Statistics Cultivated area - 325,000 hectares
Average yield per hectare: 0.4MT/ha Commercial farms MT/ha Small holders MT/ha Local processing capacity : ,000MT 2015 production estimate: 140,000 m/t Export of RCN ,600MT (2014) Export Earnings US$85m (2014) Export of kernel MT (2014)
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Vital Statistics Raw Nut Markets: Vietnam 90%, India 10%
Kernel Markets: Singapore, USA, EU, etc. Employment in Cashew Industry ,000 Factory Workers (2,000 formal, 1,000 informal) (90% women, 40-60% youth)
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Processing Opportunities in Nigeria
Main processors Olam, Valency, FoodPro, Abod Success, Kashford, Jof Ideal Investment incentives Tax breaks from Nigerian Investment Promotion Centre Export development fund from NEPC Export Expansion Grant under review 5-year NEPC cashew strategy and collaboration with USAID-NEXTT adopted in October 2014
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Cashew Export and Investment Strategy Illustration
quality & technical capacity building Goal: increase the cashew industry’s contribution to Nigeria’s non-oil exports processing-export incentives market development market information farm-level support for companies
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Investment Opportunities
Planting Processing Skills and Capacity Development Packaging Technology Plant and Machinery
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Why Invest in Nigeria? Nigeria is undergoing an Industrial Revolution era Cashew is one of Nigeria’s 13 National Strategic Export Products Nigeria has an extensive cashew production belt (70% of the country’s agricultural land supports the production of cashew) High population (170million people) representing huge domestic market, labour force Liberal and conducive government policies for export Export oriented Incentives
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Investing in Nigeria – Business registration Procedure
Obtain immigration clearance Incorporate business under Nigerian Law, by the Corporate Affairs Commission (CAC) Obtain local incorporation of Nigerian branch of company’s subsidiary as a separate entity in Nigeria Register locally incorporated branch or subsidiary with the Nigerian Investment Promotion Commission (NIPC) before commencing operations Apply to the Ministry of Interior for business permits and NIPC for other investment approvals and incentives.
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Investing in Nigeria – Facilitation One-Stop Investment Centre (OSIC)
OSIC shortens and simplifies administrative procedures for the issuances of business approvals, permits, licences and company incorporation Removes bottlenecks faced by investors and reduces the cost of doing business in Nigeria Provides - statistical data; information on the Nigerian economy; investment climate, legal and regulatory framework; sector and industry specific information to aid existing and prospective investors.
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16 Participating agencies
Nigeria Investment Promotion Commission (NIPC) Corporate Affairs Commission (CAC) Nigerian Immigration Serves (NIS) Nigeria Custom Services (NCS) Federal Inland Revenue Service (FIRS) National Office for Technology Acquisition and Promotion (NOTAP) National Agency for Food and Drugs Administration and Control (NAFDAC) Standard Organization of Nigeria (SON) Federal Ministry of Solid Mineral and Steel Development (MSSD) National Bureau of Statistic (NBS) Federal Capital Territory Administration Federal Ministry of Finance ((FMF) Central Bank of Nigeria (CBN) New Nigerian Development Company Odua’s Investment Company Limited Nigerian Maritime Administration and Agency (NIMASA)
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Investing in Nigeria – Taxation
Farmgate price (State government produce tax) FOB (0.5% FOB) =mandatory Inspection fees ECCC Export levy -$3.00 per tonne Export Duty – Zero Import Duty on Agricultural Inputs/equipment = Zero duty
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Investing in Nigeria – Financing
Nigerian Export – Import Bank (NEXIM) Under its pre-shipment financing and stocking facilities, the bank lends credit to companies including processors/exporters of kernel and raw nuts Bank of Industry (BOI) Has a dedicated fund for investors interested in setting up cashew processing plants Bank of Agriculture (BOA) Provides facilities for agricultural based activities including cashew plantation and processing.
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Fiscal Incentive Export Expansion Grant
Pioneer Status - 5 years tax holiday is granted to processing plants
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Conclusion Nigeria’s population of 170million makes it the largest market in Africa Nigeria has the largest economy in Africa with GDP of $500bn, making it a solid base and robust market for processed cashew There is also a dynamic and energetic workforce is available for the industry National Strategic Export Product status means added incentives and support.
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Thank you Export Business... Tomorrow's Business www.nepc.gov.ng
Export Business...Tomorrow's Business
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